KUALA LUMPUR (Mar 1): S P Setia Bhd’s net profit jumped 118.24% to RM123.32 million for the fourth quarter ended Dec 31, 2021 (4QFY21), from RM56.5 million a year earlier, on improved profit margin and higher share of results from some joint venture companies.

Revenue however slipped 7.28% to RM1.03 billion, from RM1.11 billion, on lower contributions from its property development segment, the group said in a filing with Bursa Malaysia.

For the full year, S P Setia was back in the black with a net profit of RM284.37 million, compared with a net loss of RM320.75 million in FY20, as revenue grew 16.56% to RM3.76 billion from RM3.23 billion.

In a statement, S P Setia president and CEO Datuk Choong Kai Wai said the group recorded another year of unsurpassed sales totalling RM4.26 billion in FY21, outperforming its original sales target of RM3.80 billion and fortifying its position as the top property developer in terms of sales.

Choong said the central region of Peninsular Malaysia contributed the highest sales of RM2.92 billion, followed by RM556 million from the southern region, while the international regions collectively registered RM762 million.

He said the government's move to extend the Home Ownership Campaign to end-2021 also augured well for the group, where it managed to clear RM754 million worth of its completed inventories.

"Despite the challenging landscape, we are heartened by encouraging response from the market towards our products and counter-strategies," he said, adding that the group would continue to leverage its digital platforms to reach out to its customers," he said.

Moving into FY22, S P Setia said the group anticipates gradual recovery to the Malaysian economy, underpinned by the continued increase in global demand and higher private sector expenditure.

"We have set our FY22 sales target at RM4 billion and intend to launch RM4 billion worth of new products focusing primarily on landed residential projects in Setia Alam, Setia Eco Glades, Setia Safiro, Setia Alam Impian, Bandar Kinrara, Setia Bayuemas, Setia Ecohill & Ecohill 2, Setia Eco Park and Setia Warisan Tropika in the Central region; Setia Indah, Taman Rinting and Taman Pelangi Indah in the Southern region, and Setia Fontaines in the Northern region," said Choong.

As of Dec 31, 2021, S P Setia had 48 ongoing projects and remaining land banks of 7,237 acres with a gross development value of RM122.4 billion. Its unbilled sales, which stands at RM10.2 billion, will provide earnings visibility in the short- to mid-term.

The group declared a final dividend of 0.65 sen per share, as well as preferential dividends of 6.49% and 5.93% per annum respectively, for its Islamic Redeemable Convertible Preference Shares A and B for the financial period.

S P Setia’s share price settled three sen or 2.29% lower at RM1.28 on Monday (Feb 28), bringing a market capitalisation of RM5.21 billion.

Edited by S Kanagaraju. 

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